JD.com (JD) 4Q16 Results: Revenue Beats Consensus on Strong GMV Growth; JD Finance Spins-Off

Executive Summary

• JD.com reported 4Q16 revenues of ¥80.25 billion, up 47% year over year, and beating the consensus estimate of ¥76.70 billion. Net loss per ADS was ¥1.26, compared to a net loss of ¥5.57 for 4Q15.
• Total GMV reached ¥206.2 billion in 4Q16, an increase of 50.5% year over year. General merchandise contributed 52% of total GMV, up from 49% in the year-ago period.
• JD.com will dispose of and no longer hold legal ownership of JD Finance. JD.com will receive approximately ¥14.3 billion in cash and profit-sharing rights for 40% of JD Finance’s pretax income.